17085700 sap-pp-materials-requirement-planning-http-sapdocs-info

Testing: Unit Testing / User Manual Module: PRODUCTION PLANNING
ENVIRONMENT
SYSTEM : SAP R/3 ECC 6.0
CLIENT :
UNIT TESTING SCENARIO
SCENARIO NUMBER : PP01- 03
DESCRIPTION : Material Planning
PREPARED BY
NAME : Pradeep D. Kalapure
DATE : 03/01/09
TEAM : Production Planning
APPROVED & TESTED BY
NAME : Nanhe Babu (PwC)
DATE :
TEAM : Production Planning
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The Concept Of MRP In SAP
MRP is the planning tool in SAP which will look at all aspects of a material and is highly based upon
the master data of the material.
MRP looks at current inventory, current requirements, and open purchase requisition/orders and so
on. So if a material is required to satisfy a sales order and there is no inventory, MRP will create a
planned order if the item is to be produced in house. This planned order can then be converted
to a production order by the master scheduler.
If the item is to be procured, then MRP will create a purchase requisition which the Buyer will
convert to a purchase order. This is just one scenario, the system is highly configurable and will do
pretty much whatever you tell based on config and master data.
The main function of material requirements planning is to guarantee material availability, that is,
it is used to procure or produce the requirement quantities on time both for internal purposes and
for sales and distribution. This process involves the monitoring of stocks and, in particular, the
automatic creation of procurement proposals for purchasing and production.
MRP Overview
MRP analyzes the demand from sales orders and forecasts. If stock is needed then a planned order
is created. A planned order consists of a suggested order quantity, a start date and a finish date.
The bill of material of the planned order is exploded, creating dependent requirements.
These are processed later by MRP, to determine if planned orders are needed for the components.
In order to replenish stock, we must convert the planned order to a production order (if it is for a
manufactured item), or to a purchase requisition (if it is for a purchased item).
MRP can create purchase requisitions directly, for purchased materials, depending on runtime
settings. If the purchased material is part of a scheduling agreement with a vendor, MRP can create
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schedule lines. When the planned order is converted to a production order, the dependent
requirements for its components become reservations.
Planning Procedure
Planning procedures automatically generate order proposals to purchasing and to production. R/3
planning procedures can be divided into Material Requirements Planning and Consumption-based
planning.
In MRP, the system compares available stock plus planned receipts with demand. If the available
quantity is less than the required quantity at a point in time, then an order proposal is created.
MRP at Plant or MRP Area Level
You can plan material requirements at plant level or for different MRP areas. With MRP at plant
level, the system adds together stocks from all of the individual storage locations, with the
exception of individual customer stock, to determine total plant stock. The requirements are
combined in the planning run and procurement elements are created for these pegged
requirements with unknown sources. Individual storage locations can be planned separately or
be excluded from planning.
In the case of material requirements planning on an MRP area level, only the stocks from the
storage locations assigned to the respective MRP area are taken into account.
Only the requirements in this MRP area are combined and procurement elements are created for
them. This enables you to plan material requirements specifically for certain areas.
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Consumption-based planning procedures use past consumption data (history) to calculate future
requirements. These procedures are sometimes used for externally procured materials or for low
value / low demand items.
Consumption-based planning can be divided into forecast-based and reorder point planning.
Reorder point planning can be divided into automatic and manual reorder point planning.
Forecast-based planning uses the SAP forecasting module to calculate future requirements from
historical data.
Reorder Point Planning
In reorder point planning, procurement is triggered when the sum of plant stock and firmed receipts
falls below the reorder point.
The reorder point should cover the average material requirements expected during the
replenishment lead time.
The safety stock exists to cover both excess material consumption within the replenishment
lead time and any additional requirements that may occur due to delivery delays. Therefore, the
Safety stock is included in the reorder level.
The following values are important for defining the reorder point:
• Safety stock
• Average consumption
• Replenishment lead time
The following values are important for defining the safety stock:
• Past consumption values (historical data) or future requirements
• Vendor/production delivery timelines
• Service level to be achieved
• Forecast error, that is, the deviation from the expected requirements
Automatic reorder point planning uses the forecasting module to determine the reorder point
quantity. A reorder proposal is generated when the stock falls below the reorder point.
In manual reorder point planning, you must specify the reorder point quantity in the material
master record.
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MRP BOM Explosion
MRP begins by calculating demand for the finished product. This consists of sales orders and
planned independent requirements. If we don't have enough supply to cover this demand, MRP will
create a planned order.
The bill of material of the planned order for the finished product is exploded. This creates dependent
requirements for the assemblies. A dependent requirement is demand that is derived from the bill of
material structure.
At the next level of the bill, MRP calculates the requirement for each assembly. If we don't have
enough supply, MRP will create a planned order.
The bill of material of the planned order for each assembly is exploded. This creates dependent
requirements for the raw materials.
At the lowest level of the bill, MRP again calculates demand. If we don't have enough supply, MRP
will create a a purchase requisition.
MRP Run Procedure
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1. Create requirement or demand in MD61
2. MRP run by MD01 for Total Planning (It will run in background).
3. See the result in stock requirement list in MD04.
MRP Run We Can Carry Out By
1 .MD01 –Total planning for the plant
Through user exit
- a. MRP Area – C class
- b. MRP Controller
- c. MRP Type
2. MD02 - Single item multi level
3 .MD03 - Single item single level
4. MD50 - Multi-level, make-to-order production.
Total Planning
You can plan material requirements at plant level or for different MRP areas. With MRP at plant
level, the system adds together stocks from all of the individual storage locations, with the
exception of individual customer stock, to determine total plant stock. The requirements are
combined in the planning run and procurement elements are created for these pegged
requirements with unknown sources. Individual storage locations can be planned separately or
be excluded from planning.
1. Transaction Code/ Path
Menu
Path
Logistics  Production  MRP Planning Total Planning - Online
T.Code MD01
2.1 Input Screen Name – Enter Control Parameters
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Description of the Field
Nature of
the Field
Value of the Field
Plant Mandatory 1110
Processing Key NETCH
Create Purchase Requisition 1
Schedule Lines 3
Create MRP List 1
Planning Mode 3 (Plant Specific)
Scheduling 2
Planning Date SYS GENERATED
Parallel Processing TICK
Display Material List TICK
After Filling The Above Data Against The Respective Fields
Press on Tab
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Press on Tab
After this system asks us before going further checks the input parameters
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After confirming the input parameters are correct, again
Press on Tab or press enter
Once again the system asks us to press enter
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System carries out the MRP Run after this and shows us the summarized screen
Control Parameters For The Planning Run
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Use
Various control parameters are available for the total planning procedure and for single-item
planning, which you can set in the initial screen of the planning run.
You use these parameters to determine how the planning run is to be executed and which results
are to be produced.
Features
The control parameters include:
• Planning run type
You can choose whether all materials are to be planned or only those with MRP relevant
changes.
Specifies the type of the MRP or MPS run. The following types are possible:
a. net change planning - The system only plans materials that have undergone a change
relevant to MRP since the last planning run.
b. net change planning in the planning horizon
c. online regenerative planning
• Creation indicator for procurement proposals for materials that are procured
externally
You can choose whether planned orders, purchase requisitions or schedule lines should be
created for materials that are procured externally.
• Creation indicator for MRP lists
You can define whether MRP lists are to be created.
• Planning mode
The planning mode (Planning mode indicator in the initial screen of the planning run) controls
how the system is to deal with procurement proposals (planned orders, purchase
requisitions, scheduling agreement lines) from the last planning run, which are not yet
firmed, in the next planning run. Firmed procurement proposals remain unchanged.
By choosing the correct planning mode, you avoid planning materials twice and thereby
optimize system performance.
The following options are available:
• adapt existing planning data (planning mode 1)
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• re-explode BOM after change to BOM (planning mode 2)
• delete planning data and recreate procurement proposals (planning mode 3)
The planning mode set in the planning file for a material can be overruled by the planning
mode in the initial screen of the planning run.
The following applies to this:
For planning a particular material the planning mode that has the highest numerical value
takes priority.
Planning mode 2 (re-explode BOM) thus takes priority over planning mode 1 (adapt planning
data), planning mode 3 (delete and recreate planning data) takes priority over planning mode
1 (adapt planning data) and planning mode 2 (re-explode BOM).
Planning Mode 1
Planning mode 1 is if you have only set the planning file entries (net change planning
indicator and net change planning horizon indicator) in the planning file for a material (see
Planning Run Type).
In the planning run in planning mode 1 the system reactivates the existing planning data, that
is, procurement proposals that are not firmed remain on the database and are only then
adapted, if the dates and quantities do not suit the new planning situation. The system only
re-explodes the BOM for adjusted procurement proposals. System performance is thus
improved.
Example of changes that cause planning mode 1 to be set:
Changes in date and quantity
Requirement changes
Changes in the lot-sizing procedure or MRP type
Planning Mode 2
Planning mode 2 is if a material has planning file entries and the Re-explode BOM indicator
is also set in the planning file.
In the planning run in planning mode 2, the system re-explodes the BOMs for all existing
procurement proposals that are not firmed and also for those, for which the dates and
quantities do not have to be adjusted.
Changes to the material BOM
Changes to the sales order BOM
Changes to the phantom assembly BOM
Changes to references assigned within BOM
Changes to material classification
Change of production version in material master or planned order
Change or conversion of BOM explosion number
Planning Mode 3
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Planning mode 3 is if a material has planning file entries and the Reset order proposals
indicator is also set in the planning file.
In planning mode 3 existing procurement proposals that are not firmed are completely
deleted from the database and recreated. The system then re-explodes the BOMs.
In-house production time
Planned delivery time
Scheduling margin key
MRP controller
• Scheduling
You can choose basic date calculation or lead time scheduling.
Total Planning Run With MRP Controller
Mention The MRP Controller For Which We Want To Carry Out The Planning Run In The User Exit
Parameter. MRP Controller Will Be Plant Specific.
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Total Planning Run With The MRP Area C- Class
Mention The MRP Area For Which We Want To Carry Out The Planning Run In The User Exit
Parameter
Total Planning Run With MRP Type
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Mention The MRP Type For Which We Want To Carry Out The Planning Run In The User Exit
Parameter
Single Item Multi Level Planning
Enter the menu path of the transaction code, which is going to be tested by the user.
Menu Path
Logistics  Production  MRP Planning Total Planning – Single-
Item,Multi-Level
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T.Code MD02
Nature of
the Field
Value of the Field
Schedule Lines 3
Create MRP List 1
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Scheduling 2
Press on Tab
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Press on Tab
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Single Item Single Level Planning
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Menu Path
Logistics  Production  MRP Planning Total Planning – Single-Item
,Single -Level
T.Code MD03
2. Input Data
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Nature of
the Field
Value of the Field
Schedule Lines 3
Create MRP List 1
Planning Date Date Of Planning Run
Press on Tab
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Press on Tab
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Single Item Multi Level Planning
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Menu
Path
Logistics  Production  MRP Planning Total Planning – Single-
Item,Multi-Level
T.Code MD50
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Nature of
the Field
Value of the Field
Sales Order Number Mandatory 4500002115
Sales Order Item Mandatory 010
Delivery Schedules 3
Scheduling 2
Press on Tab
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Press on Tab
MRP Results Evaluations
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The stock / requirements list is an important inquiry, which shows the real-time view of stocks,
receipts and requirements for a material.
Each time the stock / requirements list is called up, the system reads the database for the
appropriate
information.
This list is accessed by material, by plant or by MRP area.
You can branch into various related transactions from the stock / requirements list.
The structure and content can be configured to individual requirements using various filters and
profiles.
Result
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The system carries out total planning for the plant selected or for the scope of planning you have
defined. When you have completed the planning run you receive statistics with information on the
scope of planning, exceptional situations and terminations. You can also see how much time is
required for the planning run in total and for planning the individual materials.
Evaluating the Planning Run
During the planning run, the system analyzes the requirements that exist for the planned materials
and creates procurement elements that cover these requirements. The evaluations will display all
the receipt and issue elements for a material in the form of a table and enable you to gain a quick
overview of the stock/requirements situation for the material.
Features
The following evaluations are available for analyzing the planning result:
• MRP list
• stock/requirements list
• planning result (corresponds to the MRP list with individual evaluation layout)
• planning situation (corresponds to the stock/requirements list with individual evaluation
layout)
You can evaluate the planning situation or the result of a planning run using the stock /
requirements
list or MRP list. You can use individual or collective access for this.
The stock / requirements list is a dynamic list: it shows the current status of stocks, requirements
and receipts. Changes are immediately visible as soon as the stock / requirements list is called up
or the elements are read from the database using the refresh function in the stock / requirements
list.
The MRP list represents the result of the last planning run and therefore has a statistical nature.
Changes that were made after the planning run are not visible. You can control whether an MRP list
is to be created during the planning run.
The two lists have the same basic structure:
Links are in the form of a tree in the MRP controller's worklist (optional).
Above the list there is the header with the material number. In addition, you can display further
information using the header details.
The list itself contains the individual MRP elements and the corresponding available quantities.
User-specific settings enable you to adapt the lists to your own personal needs - this applies to both
lists (see Customizing, Evaluation for MRP, "Configure MRP list / stock/requirements list"). You
can use a customer exit to show additional data, which can then be called up using a function key
MRP List And Stock Requirement List Individual Display.
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Menu Path Logistics  Production  MRP Evaluations Stock Requirement List
T.Code MD04 or MD05
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Nature of
the Field
Value of the Field
Material 14119011402B
After filling the above data against the respective fields
Press on Tab
Press on Tab
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In the above displayed table
1) First Line shows the stock available is equal to 0.
2) Second line shows the planned independent requirement is 5.
3) Third line shows the planned order created against the PIR is 5.
Stock Requirement List Collective Display
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Menu Path
Logistics  Production  MRP Evaluations Stock Requirement List –
Collective Display
T.Code MD07
In collective access:
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o Enter the plant and one of the following parameters: MRP controller, product group,
class or vendor.
If you do not enter any further selection criteria, the system selects all the materials
assigned to this MRP controller, to this product group or to this vendor in the
respective plant.
o If the work with MRP areas is activated for a single client, you enter either the plant (=
all MRP areas including the plant MRP area) or only one particular MRP area, and, in
addition, either the MRP controller, the product group or the vendor.
If you do not enter any further selection criteria, the system selects all the materials
assigned to this MRP controller, to this product group or to this vendor in the selected
MRP area or in all MRP areas. Materials that are assigned to five MRP areas are
displayed, where applicable, with five MRP lists.
If required, enter further selection criteria.
o Date: for example, all MRP lists that were created or processed within the last two
weeks, or MRP lists for all materials with insufficient stock for the next two weeks.
o Exception groups: for example, MRP lists for all materials for which the planning run
was terminated (exception group 8).
o Processing indicator: for example, all MRP lists that have not yet been processed.
o Material data: for example, MRP lists for all materials that are procured externally.
If required, choose a display filter
For example, a display filter that only displays the planned orders for the next two weeks in
the stock/requirements list for the materials assigned to a selected MRP controller.
• You can use selection rules to define which MRP elements and which stocks are included
in the quantity and stock calculation. You hereby define your own business views.
A selection rule consists of particular time information, MRP elements and stocks that are
grouped together in a rule, which controls the selection (or import) of the data in the
stock/requirements list and the planning table for Repetitive Manufacturing:
o The system only displays MRP elements in the period that is defined in the selection
horizon.
o The system only displays the MRP elements that are selected in the selection rule.
o Of the MRP elements displayed, the system only takes those indicated as affecting
availability in the selection rule into consideration for the calculation of the quantity
available and the ranges of coverage.
o The system only takes the stocks defined in the selection rule into consideration to
calculate the unrestricted-use stock.
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This creates a new business view of the data in the lists.
• You can use display filters to define which MRP elements and MRP segments are
displayed. This enables you to reduce the information displayed to a clear selection.
A display filter consists of particular time information, MRP elements, and MRP segments grouped
in a filter that controls the display of the MRP list and the stock/requirements list.
o The system only displays MRP elements in the period that is defined in the display
horizon.
o The system only displays segments in this period that are selected in the display filter.
o Within these segments, the system only displays MRP elements that are selected in
the display filter and that, if necessary, correspond to particular additional selections
(for example, customer, vendor, storage location).
The data in the lists is thus reduced to a clear selection.
In contrast to selection rules, the calculation of the quantity available and the ranges of
coverage is not influenced by display filters.
• You can define the selection horizon for the selection rule as well as the display horizon
and the additional selections for the display filter in two ways:
o company-specific in Customizing
o user-specific in the respective analysis list
1. Select the With filter field (initial screen) or choose (main screen) in order to show the
Display filter and Selection rule fields.
2. Select a display filter and/or a selection rule.
3. Choose and, if necessary, enter a display horizon for the display filter or a selection
horizon for the selection rule, which means a period to which you want to limit the display.
4. Choose and, if necessary, enter additional selections for the display filter, for example if
you want to see MRP elements for a particular vendor or a particular customer.
If you always work with a particular display filter and/or selection rule, choose . The
system displays the Settings dialog box. Use this to define that this display filter or
selection rule should always be activated when you access the lists.
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Nature of
the Field
Value of the Field
MRP Controller
Set up Lists in back ground TICK
Press on Tab
MRP Controller (Materials Planner)
Specifies the number of the MRP controller or group of MRP controllers
responsible for material planning for the material.
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Stock Requirement List as per the MRP Controller then get displayed
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Select the individual lines and click on tab it will show the
requirements for the particular item code & the planned orders generated against the requirement
qty.
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17085700 sap-pp-materials-requirement-planning-http-sapdocs-info

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